Delta Corp's plant in Austin has been experiencing imbalances in its inventory of components used in the production of a line of computer printers. Both stock shortages and overstock conditions are occurring.The production analysis group is studying the pattern of demand for component PS2400, a power supply used in many of Delta's products. The group believes that the most recent 12 weeks of demand for the PS2400 is representative of the future weekly demand:
a. Use a four-week moving average to develop a forecast of the demand for the PS2400 component in week 13.
b. Use a four-week weighted moving average with weights of .4 (for the most recent datum), .3, .2, and .1 to forecast the demand for the PS2400 component in week 13.

Question

Delta Corp's plant in Austin has been experiencing imbalances in its inventory of components used in the production of a line of computer printers. Both stock shortages and overstock conditions are occurring.The production analysis group is studying the pattern of demand for component PS2400, a power supply used in many of Delta's products. The group believes that the most recent 12 weeks of demand for the PS2400 is representative of the future weekly demand:  
a. Use a four-week moving average to develop a forecast of the demand for the PS2400 component in week 13.
b. Use a four-week weighted moving average with weights of .4 (for the most recent datum), .3, .2, and .1 to forecast the demand for the PS2400 component in week 13.

Quizplus · Accepted Answer

The Answer of Delta Corp's plant in Austin has been experiencing imbalances in its inventory of components used in the production of a line of computer printers. Both stock shortages and overstock conditions are occurring.The production analysis group is studying the pattern of demand for component PS2400, a power supply used in many of Delta's products. The group believes that the most recent 12 weeks of demand for the PS2400 is representative of the future weekly demand:  
a. Use a four-week moving average to develop a forecast of the demand for the PS2400 component in week 13.
b. Use a four-week weighted moving average with weights of .4 (for the most recent datum), .3, .2, and .1 to forecast the demand for the PS2400 component in week 13.

Delta Corp's Plant in Austin Has Been Experiencing Imbalances in Its